+ Larger Font | + Smaller FontThe purpose of a SIPP is to provide the policy holder with a tax efficient vehicle to generate adequate funds to secure retirement income for you and your family. Also, if aged 55 or above, you can use your SIPP to provide you with a tax free lump sum and disposable income.
The most beneficial characteristics of SIPP’s are those of choice, control and flexibility. Not only this, but they provide generous tax breaks that can be controlled by you to generate extra income when available.
Generally SIPP’s work on the same rules that apply to nearly all personal pensions, however they do have some extremely beneficial improvements. Some of the more beneficial improvements include the option to invest in commercial property and being able to freely transfer assets in and out of your SIPP when you need to.
SIPP’s allow you to construct a diverse portfolio of investments that you can change as and when you need to, offering a level of flexibility you simply cannot get with more conventional pensions.
Types of SIPP
Different SIPP’s offer varying levels of access to property and insurance based investment vehicles. To simplify however, SIPP’s generally fall into one of two categories:- Personally managed, fully flexible SIPP’s
- Low cost SIPP’s with restricted access to collective investments and share options
More commonly, the larger SIPP providers are more strict in how they apply these rules. As a general rule of thumb, the bigger they are, the less flexible they are. Normally, smaller specialist providers can be much more flexible when it comes to finding the most appropriate plan for your needs.
Frozen Pension Review Service:
Please take advantage of a free, no obligation review with one of our recommended, independent pension advisers. During which they can discuss some of the various options open to you.
